Eisenmann v. Commissioner
United States Tax Court
Louis R. Eisenmann conveyed a half interest in his business, in trust for the benefit of his minor son. The trust was irrevocable, and the trustee was vested with full and complete powers of management and control. The trustee was a business acquaintance but otherwise unrelated to the grantor. A partnership agreement between the grantor and the trustee to operate a business was a part of the trust agreement.
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Louis R. Eisenmann conveyed a half interest in his business, in trust for the benefit of his minor son. The trust was irrevocable, and the trustee was vested with full and complete powers of management and control. The trustee was a business acquaintance but otherwise unrelated to the grantor. A partnership agreement between the grantor and the trustee to operate a business was a part of the trust agreement. The trustee accepted the trust and actively participated in the management and operation of the partnership and a related partnership formed thereafter. Respondent taxed the income…
1Opinion of the Court
OPINION.
Bice, Judge:
In determining the deficiencies for the taxable years, respondent taxed all of the partnership income to the petitioner. He contends that petitioner and the trustee were not real partners in the conduct of the business during any of the taxable years. His position is that “petitioner as grantor of the trust retained directly or indirectly the benefits and control over the trust corpus and the income therefrom, and that the arrangement made by the petitioner, although through formal instruments, amounts to no more than a reallocation of the income from Louis-White Motors…
2Cases cited8 opinions
- Commissioner v. CulbertsonSupreme Court of the United States · 1949
- Stern v. CommissionerUnited States Tax Court · 1950
- Feldman v. Commissioner of Internal RevenueCourt of Appeals for the Fourth Circuit · 1950
- Feldman v. CommissionerUnited States Tax Court · 1950
- Greenberger v. Commissioner of Internal RevenueCourt of Appeals for the Seventh Circuit · 1949
3 more not listed; retrieve them via the Exa API.
3Cited by1 opinion
- Eisenmann v. CommissionerUnited States Tax Court · 1952